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CHP 2 PURCHASING AND SUPPLY IN THE BUSINESS ENVIROMENT (Purchasing and…

CHP 2 PURCHASING AND SUPPLY IN THE BUSINESS ENVIROMENT

Purchasing and Supply Activities

Purchase order processing

Negotiating with suppliers

Maintaining good supplier relations

Administration the purchasing department.

Selecting suppliers

Establishing quantity needs

Maintaining sufficient inventory

Receiving products

Maintaining adequate records

Order expediting

Purchasing and Supply Environment

Environmental purchasing is the inclusion of environmental factors in decisions on the purchase of products and/or services.

Purchasing and supply environment behavior by going into the field to research the complete life cycle of products and services from raw material extraction, to packaging, shipping, transportation, use, disposal and reuse.

Green purchasing and supply can bring important benefits

Improvements in environmental performance

Improve resource use efficiency

Eco-efficiency

Stronger supplier relationships

What is business environment in logistics

Logistics can be defined as the practice of transporting materials or goods from a source point to any distinct destination.

The business sectors use the term to refer effective transportation as well as storage of goods from the point of origin to the ending. In the current business environment, logistics is a highly demanded profession and the logistic course is of great importance.

Five rights of purchasing

From the right source,

In the right quantity

At the right time

To buy goods or services of the right quality,

At the right price.

Differences Between Inbound Logistics and Outbound Logistics

Outbound logistics, as the name suggests, is the collection, storage and distribution of the final goods and related information flows, from the manufacturing plant to the end user. It covers all those activities which are involved in the outflow of merchandise from seller to the buyer.

Inbound logistics connotes the activities which are related to sourcing, acquiring, storing and delivering the raw materials and parts to the product or service department. It is part and parcel of the operations, for a firm involved in manufacturing business.

Differences between supply chain and supply chain management

supply chain is a system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials, and components into a finished product that is delivered to the end customer

Supply chain management is the integration of key business processes from end user through original suppliers that provides products, services, and information that add value for customers and other stakeholders